On-Bill Financing: Overview and Key Considerations for Program Design

On-bill financing programs are a promising way for utilities to help their customers invest in energy efficiency improvements, such as upgrading to a high-efficiency air conditioner or adding insulation. These improvements can deliver valuable efficiency to the utility, reduce customers’ energy expenses, improve the value of properties, create jobs, and reduce harmful pollution. Because efficiency delivers so much value, many cities, states, and utilities across the country are exploring on-bill programs as a way to help customers finance energy saving upgrades to their houses and buildings. The purpose of this issue brief is to describe key benefits and challenges to consider when exploring an on-bill program.